The sequential revenue decline (-5% QoQ) and elevated credit provisions ($148M vs $0 YoY) temper the headline beat. Watch for Q4 guidance on investment banking pipeline and credit loss trends, as the Institutional Securities segment showed weakness in fixed income (-7% YoY) and underwriting (-11% QoQ).
Price Chart
Executive Summary
Morgan Stanley reported Q3 2026 net revenues of $20.3B (+12% YoY) and EPS of $3.03 (+8% YoY), beating consensus estimates of $2.93. Wealth Management posted record revenues of $9.1B with $232B in net new assets, while Institutional Securities equity revenue surged 41% YoY. However, total revenues declined 5% sequentially from Q2 2026, and the Investment Management segment saw a 12% YoY revenue decline due to a reversal of carried interest.
Key Financial Metrics
Key Facts
- Net revenues $20.3B, +12% YoY but -5% QoQ
- EPS $3.03 vs consensus $2.93 (+3.5% beat)
- Wealth Management record revenues $9.1B, +10% YoY
- Wealth Management net new assets $232B, +187% YoY
- Institutional Securities equity revenue $5.8B, +41% YoY
- Investment Management revenue $1.5B, -12% YoY
- Firm repurchased $1.5B of common stock in Q3
- Standardized CET1 ratio 14.9%, stable QoQ
- ROTCE 22.6% vs 23.5% a year ago
- Provision for credit losses $148M vs $0 a year ago
Financial Impact
EPS beat of ~3.5% on $20.3B revenue; Wealth Management fee-based flows $80.5B (+92% YoY)
Risk Factors
- Credit provisions rose to $148M from $0 a year ago, with $105M in charge-offs
- Investment Management revenue declined 12% YoY on carried interest reversal
- Fixed income revenue -7% YoY and -18% QoQ
- Sequential revenue decline of 5% from Q2 2026
- Tier 1 leverage ratio declined to 5.9% from 6.8% a year ago
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000895421-26-000288 |
| Document: a3q26msearningsrelease.htm | 0000895421-26-000288 |
| Document: ms-20261014.htm | 0000895421-26-000288 |
| Document: 0000895421-26-000288-index-headers.html | 0000895421-26-000288 |
| Document: 0000895421-26-000288-index.html | 0000895421-26-000288 |
| Document: 0000895421-26-000288.txt | 0000895421-26-000288 |
| 8-K Data (Synthetic) | 0000895421-26-000288 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Institutional Cluster | $187.45 | awaiting T+20 | awaiting T+20 | $186.91 (−0.29%) |
Oct 16, 2026 11d ago | 144 | $178.47 | awaiting T+20 | awaiting T+20 | $186.91 (+4.73%) |
Oct 14, 2026 13d ago | 8-K | $181.51 | awaiting T+20 | awaiting T+20 | $186.91 (+2.98%) |
Oct 8, 2026 19d ago | ANALYST-UPGRADE | $187.44 | awaiting T+20 | awaiting T+20 | $186.91 (−0.28%) |
Aug 14, 2026 10w ago | Court Ruling | $218.21 $206.28 | ▼ −5.47% | ▼ −3.49% | $186.91 (−14.34%) |
Aug 13, 2026 10w ago | 13F-HR | $218.38 $214.38 | ▼ −1.83% | ▼ −0.08% | $186.91 (−14.41%) |
Jul 17, 2026 14w ago | Insider Cluster | $210.94 $218.21 | ▲ +3.45% | ▼ −0.67% | $186.91 (−11.39%) |
Jul 15, 2026 14w ago | 8-K | $228.55 $217.64 | ▼ −4.77% | ▼ −7.12% | $186.91 (−18.22%) |
Jun 24, 2026 17w ago | 8-K | $221.04 $215.18 | ▼ −2.65% | ▼ −3.18% | $186.91 (−15.44%) |
Jun 5, 2026 20w ago | Court Ruling | $211.93 $222.10 | ▲ +4.80% | ▲ +2.94% | $186.91 (−11.81%) |
US Market Status
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